Fresh Deciduous Fruit Report

An Expert's View about Pome Fruits (such as apples or pears) and Stone Fruits (such as peaches, cherries, etc.) in Brazil

Last updated: 11 Jul 2011

Post estimates that production of apples, pears and grapes will slightly decrease in MY2011 as a result of unfavorable weather conditions. Imports are expected to increase due to lower domestic production and a favorable exchange rate for importers.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Voluntary Public - Date: 6/22/2011 GAIN Report Number: BR0711 Brazil Post: Brasilia Annual Fresh Deciduous Fruit Report Report Categories: Fresh Deciduous Fruit Approved By: Julie Morin, Agricultural Attaché Prepared By: Priscila Ming, Agricultural Assistant Report Highlights: Post estimates that production of apples, pears and grapes will slightly decrease in MY2011 as a result of unfavorable weather conditions. Imports are expected to increase due to lower domestic production and a favorable exchange rate for importers. General Information: Apples Area: Total planted area for apples in Brazil is estimated to increase slightly to 39,129 hectares, according to the Brazilian Apples Producers Association. Santa Catarina continues to be the main apple producing- state in Brazil, accounting for 50 percent of total area, followed by Rio Grande do Sul with 44 percent. Total planted area expansion is on hold in Rio Grande do Sul and Parana states due to a significant drop in economic returns and unfavorable weather conditions. State Principal Planted area 2009 Planted area 2010 Variation Varieties (ha) (ha) Santa Catarina Gala and Fuji 19,817 20,014 1% Rio Grande do Gala and Fuji 17,115 17,115 0% Sul Parana Eva 1,900 1,900 0% Sao Paulo Eva - 50 - TOTAL Gala, Fuji and 38,832 39,129 1% BRAZIL Eva Source: CEPEA Producers from the region of Parapanema in southwestern part of Sao Paulo state planted 50 hectares of apples. This new area takes advantage of existing infrastructure from the planting of peach, plums and nectarines. Trade sources indicate that there is a potential growth of 10 percent for the next year, based on good transportation system, expansion plans and existing infrastructure. Production: In 2010, apple production totaled 1.275 MMT, 4 percent higher than 2009. During the peak season, which is at the beginning of the year, farmers had problems with storage of the product, and thus a larger volume than usual had to be marketed soon after being harvested when prices were low, instead of being stored and sold in the third quarter. Furthermore, it rained during harvesting, which caused delays. Due to poor quality, the amount of fruit juiced was about 30 percent higher in 2010 than 2009. In 2010, apple producers from Rio Grande do Sul and Santa Catarina states received less money for their product compared to 2009. In the domestic market, the average value received for the fruit in 2010 was R$29.24/box, 0.5 percent lower than 2009, and 0.9 percent less than 2008. CY 2010 started with a heavy rainfall. As a result some orchards experienced disease problems, due to excess of moisture, which has affected the quality of the 2011 harvest. In mid-March 2011, the harvest of the Fuji variety began. According to producers, the volume harvested this season should be similar to that of past years with the same quality as last year?s crop. There were sufficient cold nights and warm days in early March, the period of maturation of the fruit, to lead to good coloration. Although hail storms also affected the Fuji orchards, the amount of damage was far less to the Fuji crop than to the Gala crop. Trade sources indicate that the 2011 harvest production is estimated to decrease 3 percent due to adverse climate conditions. Consumption: Consumption of apples in Brazil is mostly fresh with large variations in preference depending on the region. Consumers in southern Brazil, who have been exposed to a more European style of colonization, prefer larger apples. Consumers in the central region of Brazil prefer medium-sized apples. While those in the northeast favor smaller-sized apples. Trade contacts highlight that this wide variety of preferences within a single country equates to a market for the entire crop. According to the World Apple and Pear Association, fresh apple consumption was 3.42 kilos per inhabitant in 2010. Apple juice is not included on the list of the most seven widely types of fresh and /or frozen juice consumption in Brazil. Grape (22.5 percent of total juice consumed), peach (21.1 percent) and orange (9.6 percent) are the most popular juice flavors. Trade: Fresh Apple Exports In 2010, Brazil exported 90,839 MT of apples, an 8 percent decrease compared to the same period in 2009. The decrease in exports is attributed to the low product quality and a weaker demand from the European Union. Brazil exported 21,700 MT of apples in the first quarter of 2011, down 43 percent from the same period in 2010, according to official data (SECEX). According to USDA's Agricultural Marketing Service, the Brazilian apple royal caliber 100 (Gala) was negotiated at Rotterdam at an average of US$ 29.69/box of 10 kg in April, a value 17 percent higher than last year. Trade sources estimate that apple exports will decrease by 22 percent in CY 2011. One of the reasons is the reduced quality of Brazilian apples due to unfavorable weather conditions during stages of fruit development. In addition, last year's flooding in Rio Grande do Sul damaged the infrastructure and consequently distribution is not running as smoothly as usual. Brazil Export Statistics Commodity: 080810, Apples, Fresh Calendar Year: 2008 - 2010 Partner 2008 2009 2010 Unit Country USD Quantity USD Quantity USD Quantity World (TOTAL) KG 80,928,571 112,249,624 56,328,134 98,264,010 55,365,805 90,839,409 Netherlands KG 24,490,591 35,743,550 20,146,751 35,678,153 15,498,977 26,687,627 United Kingdom KG 13,659,664 18,034,285 5,050,274 8,640,426 4,945,259 7,340,263 Portugal KG 4,011,922 5,855,825 4,049,193 7,338,477 4,081,711 7,066,729 Bangladesh KG 2,558,156 4,718,930 4,337,786 9,098,846 3,792,645 6,735,425 Spain KG 4,828,779 5,252,037 1,634,862 2,454,790 3,302,159 5,080,334 France KG 4,433,211 6,209,213 4,881,208 7,788,513 3,274,447 5,451,858 Ireland KG 2,885,850 3,664,225 2,342,229 3,908,538 3,218,352 4,804,627 Finland KG 3,331,965 4,286,229 2,381,484 3,862,574 2,989,280 4,419,582 Denmark KG 2,897,706 3,645,567 929,650 1,299,885 2,731,562 4,518,251 Sweden KG 4,354,191 5,810,849 1,848,814 2,844,291 2,199,310 3,111,142 Russia KG 1,422,737 1,948,875 886,743 1,328,905 1,928,057 3,259,964 United Arab Emirates KG 1,005,676 1,674,715 1,026,693 2,056,207 1,446,848 2,354,677 Germany KG 4,147,429 5,179,112 2,141,447 3,710,684 1,398,933 2,361,953 Italy KG 2,403,502 3,679,117 1,762,483 2,871,540 963,791 1,507,475 Libya KG 238,769 275,184 544,671 1,094,121 846,968 1,538,649 United States KG 288,034 358,974 253,344 501,984 516,500 910,224 Others KG 3,970,389 5,912,937 2,099,918 3,761,997 2,231,006 3,690,629 Source: Secex Apple Imports Fresh Apple Apple imports are expected to increase in marketing year 2011/2012. In CY 2010, Brazil imported 25 percent more apples compared to 2009 due to lower quality of domestic apples and favorable exchange rates. Argentina was the major supplier providing 63 percent of the total imports, followed by Chile and France 12 percent. In 2010 Chile was responsible for 43 percent of Brazilian imports, up from 10 percent in 2009. One of the reasons for this increase was the earthquake that affected Chilean orchards in early 2010, encouraging local farmers to export to Brazil and Argentina the damaged fruit that was going to be shipped to Europe, with lower value. The United States did not export to Brazil in 2010 due to the U.S. eastern region?s smaller production and quality not meeting imports demands. Brazil Import Statistics Commodity: 080810, Apples, Fresh Calendar Year: 2008 - 2010 Partner 2008 2009 2010 Unit Country USD Quantity USD Quantity USD Quantity World KG 48,119,247 55,041,867 46,187,228 61,343,068 60,046,723 76,879,090 Argentina KG 39,545,667 45,353,625 37,112,317 50,401,257 39,353,137 48,447,869 Chile KG 5,428,399 7,016,502 3,971,569 5,886,051 15,454,476 23,253,245 France KG 1,101,465 939,229 2,027,254 1,932,580 2,906,847 2,699,753 Italy KG 381,369 318,150 1,070,635 971,307 1,273,056 1,221,260 Spain KG 319,888 273,232 516,493 492,243 700,846 837,862 Portugal KG 475,615 551,722 1,068,609 1,320,758 294,245 346,201 Uruguay KG 125,934 131,206 48,793 70,193 60,970 70,300 - - - - Peru KG 3,146 2,600 - - United States KG 740,910 458,201 371,558 268,679 Source: SECEX Apple Juice Exports and Imports Apple juice exports increased 74 percent in 2010, mainly because of the low quality of the fruit that was destined for processing. Apple juice imports also increased due to a favorable exchange rate. Brazil Export Statistics Commodity: 200979, Apple Juice,Nes,Unfermented And Not Spirited Whether Or Not Sugared/Sweetened Calendar Year: 2008 - 2010 Partner 2008 2009 2010 Unit Country USD Quantity USD Quantity USD Quantity World (TOTAL) KG 36,243,589 30,598,274 19,438,241 22,063,147 32,904,291 38,390,929 United States KG 18,244,427 17,337,511 14,136,829 17,049,713 25,154,196 29,650,149 Japan KG 9,631,420 6,921,275 4,224,339 3,870,485 3,332,950 3,534,420 - - South Africa KG 7,950 13,250 1,566,693 1,933,890 Netherlands KG 3,884,949 2,385,430 57,700 84,000 1,393,209 1,633,935 - - Argentina KG 165,000 100,000 693,629 867,500 - - Mexico KG 702,000 780,000 378,644 406,500 Puerto Rico (U.S.) KG 3,663,559 3,383,098 212,813 194,050 137,380 154,500 - - Uruguay KG 278,760 157,760 70,408 71,640 Others KG 375,474 313,200 96,610 71,649 177,182 138,395 Source: SECEX Brazil Import Statistics Commodity: 200979, Apple Juice,Nes,Unfermented And Not Spirited Whether Or Not Sugared/Sweetened Calendar Year: 2008 - 2010 Partner 2008 2009 2010 Unit Country USD Quantity USD Quantity USD Quantity World (TOTAL) KG 39,554 65,023 35,806 47,542 129,883 143,376 - - Argentina KG 6,974 14,280 48,612 45,990 Germany KG 12,466 8,551 11,681 8,670 36,061 26,707 - - - - China KG 19,071 22,000 Hungary KG 8,653 29,220 9,532 23,040 14,908 36,360 United States KG 7,869 8,733 5,657 6,426 6,497 7,560 South Africa KG 3,592 4,239 8,655 9,125 4,651 4,709 - - - - Italy KG 83 50 - - - - Chile KG 281 281 Source: SECEX Harmonized Tariff System (HS) Codes: Tariff Rate Table Tariff Number Product Description Rate (%) (HTS) 0808.10.00 Apples, Fresh 10 2009.7 Apple juice 14 Prices: Gala Apples (CEAGESP-SP) ? Prices in R$/ box 18 kg Ye Jan Feb Mar Apr Ma Jun July Au Sept Oct Nov Dec Av ar y e g g 201 42, 28, 29, 30, 31, 33, 35, 35, 38,0 42,0 48, 45, 37, 0 00 00 00 00 00 00 00 00 0 0 00 00 00 Exchange rate: 1US$ = R$ 1.65 Production, Supply and Demand Data Statistics : App les, Fresh B 2009/2010 2010/2011 2011/2012 razil M Market Year Begin: Jan arket Yea r Begin: Jan 2010 Market Year Begin: Jan 2011 2012 USDA O N USDA ew Post fficial O New P USDA ost New Post fficial Official Area Planted 0 0 0 39,129 39,000 (HA) Area Harvested 38,832 38,832 38,800 38,563 38,100 (HA) Bearing Trees 0 0 0 0 0 (1000 TREES) Non-Bearing 0 0 0 0 0 (1000 TREES) Trees Total Trees 0 0 0 0 0 (1000 TREES) Commercial 1,257,114 1,220,499 1,250,000 1,275,852 1,240,000 (MT) Production Non-Comm. 0 0 0 0 0 (MT) Production Production 1,257,114 1,220,499 1,250,000 1,275,852 0 1,240,000 (MT) Imports 70,000 61,343 60,000 76,879 82,000 (MT) Total Supply 1,327,114 1,281,842 1,310,000 1,352,731 0 1,322,000 (MT) Fresh Dom. 1,051,205 1,051,205 1,045,000 1,076,892 1,062,000 (MT) Consumption Exports 90,000 98,264 80,000 90,839 70,000 (MT) For Processing 185,909 132,373 185,000 185,000 190,000 (MT) Withdrawal From 0 0 0 0 0 (MT) Market Total Distribution 1 ,327,114 1,281,842 1,310,000 1,352,731 0 1,322,000 (MT) Pears Production Pear production in Brazil is insignificant, with only 18,300 MT of production. This production is concentrated in the states of Rio Grande do Sul, Santa Catarina, Parana, Sao Paulo and Minas Gerais. The fruit is sold locally, mostly in small cities and little impact on the big wholesale markets. European universities have been testing the feasibility of growing pears in Brazil?s apple-growing regions. Imports Pear imports were up 17 percent in CY 2010 to 189,884 MT versus 161,963 MT the previous year due to favorable exchange rates and higher consumer purchasing power. Argentina?s market share was 80 percent in 2010; Portugal?s market share rose significantly from 8 percent in 2009 to 13 percent while the U.S market share declined from 6 percent to 4 percent in 2010. Trade sources forecast that 2011 pears imports will decrease by 3 percent. Brazil Import Statistics Commodity: 080820, Pears And Quinces, Fresh Calendar Year: 2008 - 2010 Partner 2008 2009 2010 Unit Country USD Quantity USD Quantity USD Quantity World KG 120,702,988 139,887,842 134,858,058 161,963,321 162,013,314 189,884,789 Argentina KG 98,894,555 121,534,848 102,004,471 132,528,278 120,583,534 151,432,075 Portugal KG 8,243,086 6,901,205 14,914,518 13,524,773 25,947,309 24,507,505 United States KG 8,455,058 6,258,027 11,742,743 10,067,903 8,311,049 7,105,742 Spain KG 2,772,127 2,165,937 4,584,303 3,797,022 5,303,027 4,583,453 Uruguay KG 1,139,827 1,746,669 413,606 685,672 932,994 1,291,180 Chile KG 1,116,985 1,221,400 819,994 1,098,540 849,771 900,370 Italy KG 81,350 59,756 378,423 261,133 84,497 63,504 - - - - France KG 1,133 960 Source: SECEX Harmonized Tariff System (HS) Codes: Tariff Rate Table Tariff Number Product Description Rate (%) (HTS) 0808.20.10 Pears, Fresh 10 Production, Supply and Demand Data Statistics: Pea rs, Fresh B 2009/2010 2010/2011 2011/2012 razil Market Year Begin: Jan Market Year Begin: Jan Market Year Begin: Jan 2010 2011 2012 USDA USDA SDA O New Post fficial O New P U ost fficial O New Post fficial Area Planted 0 0 0 0 0 (HA) Area Harvested 1,800 1,650 0 1,650 1,650 (HA) Bearing Trees 0 0 0 0 0 (1000 TREES) Non-Bearing Trees 0 0 0 0 0 (1000 TREES) Total Trees 0 0 0 0 0 (1000 TREES) Commercial 18,300 17,100 18,200 18,300 18,200 (MT) Production Non-Comm. 0 0 0 0 0 (MT) Production Production 18,300 17,100 18,200 18,300 18,200 (MT) Imports 195,000 161,963 150,000 189,884 185,000 (MT) Total Supply 213,300 179,063 168,200 208,184 193,200 (MT) Fresh Dom. 213,300 179,063 168,200 208,184 193,200 (MT) Consumption Exports 0 0 0 0 0 (MT) For Processing 0 0 0 0 0 (MT) Withdrawal From 0 0 0 0 0 (MT) Market Total Distribution 213,300 179,063 168,200 208,184 193,200 (MT) Grapes Area Total planted area for grapes is expected to remain the same in 2010 at 77,000 hectares. Although, according to recent surveys, the Bahia and Minas Gerais states are losing grape planted area due to higher land values. However, this lost area is offset by increases in other regions of Rio Grande do Sul, Sao Paulo and Parana state. Most important regions for grape production States Region Planted area Planted area Variation 2009 (ha) 2010 (ha) Bahia Petrolina, Juazeiro, Vale do Sao 12,000 12,000 0.0% Francisco Minas Pirapora, Varzea da Palma, 220 154 -30.0% Gerais Buritizeiros e Lassance Sao Paulo Sao Miguel Arcanjo 2,050 2,050 0% Sao Paulo Louveira 4,595 4,549 -1,0% Parana Maringa 6,200 6,280 1.3% Parana Marialva 1,670 1,770 6.0% SUB 27,235 26,803 - 0.7% TOTAL Source: CEPEA Total planted area for grape production States Planted area 2008 (ha) Planted area 2009 (ha) Planted area 2010 (ha) Rio Grande do Sul 45,300 46,259 46,259 Sao Paulo 9,514 9,514 9,514 Pernambuco 5,814 6,038 6,038 Parana 5,750 5,800 5,800 Brazil total area 78,400 77,000 77,000 Source: IBGE Production The Sao Francisco Valley is expected to maintain the planted area at around 12,000 hectares with seedless grapes accounting for 70 percent of production. The peak of the harvest for the export market is in May and September-November and for the domestic market April-June and September- December. According to estimates by Valexport (Sao Francisco Valley Producers Association), nearly 95 percent of Brazilian grape exports originate from the Sao Francisco Valley in Pernambuco and Bahia states. In 2010, many producers eventually directed a larger share of grapes production to the domestic market. Those producers pruned their orchards in order to sell the fruit only in the third quarter. Thus, from January to June 2010, the low fruit availability in the Northeastern region met the local demand while in the third quarter a larger volume was destined to the domestic market. Another factor was that the warm temperatures accelerated the physiological cycle of the orchards, so the fruit was harvested before the period of export and thus directed to domestic market. The orchards increased productivity in the fields that was destined to international markets. With this scenario, January-November 2010, exports of grape valley were 11 percent higher than the same period the previous year, according to trade sources. Consumption Sources estimate grape consumption at 3.54 kilos per inhabitant. Following last year?s trend, there was strong growth in demand for natural grape juice (with stocks being exhausted at some wineries). As consumers seek for a healthier juice option and organic products, there is a trend for producers to shift to producing grapes destined for juice as opposed to wine. In 2010, 31.8 million liters of natural grape juice were produced; up from 25.5 million liters in 2009. Trade Grape Exports Production in Rio Grande do Sul is intended for processing, and in the Northeast (Sao Francisco Valley) for exports, the state of Sao Paulo grows for table consumption. Grape exports increased 11 percent from 54,560 MT to 60,805 MT in 2010. Trade sources forecast that grape exports in 2011 will remain at the same level or slightly decrease due to softening demand and adverse weather conditions. In 2010, grape producers from Sao Francisco Valley received less money for their product compared to 2009. The international market, the average value received for the fruit in 2010 (until December) was R$ 3.03/kg, about 20 percent lower than 2009. In this scenario, trade sources forecast that producers will maintain the planted area, the rains that occurred in the first months of 2011 decreased quality and yields, limiting exports for next crop. Brazil Export Statistics Commodity: 080610, Grapes, Fresh Calendar Year: 2008 - 2010 Partner 2008 2009 2010 Unit Country USD Quantity USD Quantity USD Quantity World (TOTAL) KG 171,456,124 82,242,151 110,574,457 54,559,684 136,648,806 60,805,185 Netherlands KG 65,227,215 34,413,288 44,184,938 22,662,669 58,803,505 26,149,217 United Kingdom KG 38,772,121 18,580,726 27,473,174 13,299,002 32,927,215 15,023,635 United States KG 41,262,823 19,027,635 22,745,590 12,444,690 28,928,695 13,128,195 Belgium KG 8,111,299 3,163,866 3,229,623 1,507,559 4,258,476 1,777,534 Norway KG 4,094,121 1,434,054 4,007,602 1,406,774 2,766,991 1,016,725 Canada KG 2,621,657 739,519 2,324,716 688,878 1,912,515 716,985 Germany KG 2,693,071 1,297,991 1,475,757 759,594 1,437,429 713,942 Argentina KG 1,474,257 724,192 929,225 414,008 1,005,124 446,280 Others KG 7,199,560 2,860,880 4,203,832 1,376,510 4,608,856 1,832,672 Source: SECEX Grape Imports Post forecasts that grape imports will increase 3 percent in 2011, due to lower domestic production and a favorable exchange rate for importers. CY 2010 grape imports increased by 32 percent compared to 2009. Chile is the main supplier accounting for 48 percent market share, and Argentina market share was 47 percent. The earthquake in Chile resulted in more volume being exported to Brazil than to other international markets because of quality and lower price. Brazil Import Statistics Commodity: 080610, Grapes, Fresh Calendar Year: 2008 - 2010 Partner 2008 2009 2010 Unit Country USD Quantity USD Quantity USD Quantity World KG 14,848,949 12,565,321 21,697,296 18,665,476 36,074,860 24,794,695 Chile KG 4,246,892 3,479,598 12,828,213 10,846,054 17,019,296 11,806,542 Argentina KG 10,223,013 8,941,022 8,062,155 7,453,027 15,926,306 11,559,264 - - Peru KG 135,846 75,550 1,097,870 504,154 Mexico KG 42,034 16,656 93,644 31,200 1,025,498 432,639 - - Italy KG 40,411 14,439 438,972 190,141 Spain KG 75,904 30,350 253,794 124,345 325,707 212,463 United States KG 247,523 91,055 283,233 120,861 241,211 89,492 - - - - Portugal KG 13,583 6,640 Source: SECEX Harmonized Tariff System (HS) Codes: Tariff Rate Table Tariff Number Product Description Rate (%) (HTS) 0806.10.00 Grapes, Fresh 10 Production, Supply and Demand Data Statistics: G rapes, Fresh B 2009/2010 2010/2011 2011/2012 razil M Market Year Begin: Jan arket Year Begin: Jan 2009 Market Year Begin: Jan 2010 2011 USDA DA DA O N US ew Post fficial O N US ew Post fficial O New Post fficial Area Planted 77,000 78,400 77,000 77,000 77,000 (HA) Area Harvested 0 0 0 0 0 0 (HA) Commercial Production 1,300,000 1,310,189 1,300,000 1,300,000 1,300,000 (MT) Non-Comm. Production 0 0 0 0 0 (MT) Production 1,300,000 1,310,189 1,300,000 1,300,000 0 1,300,000 (MT) Imports 24,000 18,665 18,000 24,794 25,500 (MT) Total Supply 1,324,000 1,328,854 1,318,000 1,324,794 0 1,325,500 (MT) Fresh Dom. Consumption 1,272,000 1,274,294 1,266,000 1,263,989 1,265,500 (MT) Exports 52,000 54,560 52,000 60,805 60,000 (MT) For Processing 0 0 0 0 0 0 (MT) Withdrawal From Market 0 0 0 0 0 0 (MT) Total Distribution 1,324,000 1,328,854 1,318,000 1,324,794 0 1,325,500 (MT)
Posted: 11 July 2011, last updated 11 July 2011

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