A Look on the Productive Reality
Apple Brazilian Scenario
Pierre Nicolas Pérès
Associação Brasileira de Produtores de Maçã
ABPM
Madrid 21st. October 2011
About ABPM
ABPM – Associação Brasileira de Produtores
de Maçã
•Non-profit association with a permanent secretariat
based in Fraiburgo
•Created in 1978 to set up a national forum of
discussion for issues affecting apple production,
regulation, research and trade
•Incorporate the 3 states Association, Cooperatives
and apple Producers, representing 90% of the volume
produced .
•President elected
ABPM’s objective
• Mission
– Facilitate to the associate access to private and publics
means financial and scientific for production of high
quality fruits, using technology respecting the
environment and consumer health.
• Vision
– To be the reference in the brazilian fruit sector,
contribute to the economy of the apple regions, looking
for the engagement of federal, state and municipal
authorities
• Principles
• Principles
– Ethic and integration of the producers, social
responsibility, respect of environment, respect of
individual value, equilibrium between the fruit growing
segments and client’s satisfaction.
BRAZILIAN DATA
PRODUCTION
SURFACE
AND
VARIETIES
PRODUCTION (t)
Source: IBGE, ABPM, AGAPOMI, EPAGRI, DEROL
APPLE PRODUCTION PER STATE
2010-11 (VOLUME – T)
STATE
Santa Catarina
R. Grande do Sul
Paraná
Others (BA, MG,SP)
Total
Production (t)
689.876
605.177
56.000
1.851
1.355.904
Source: IBGE/ABPM/AGAPOMI/FRUTIPAR
(%)
51%
45%
4%
0%
100%
APPLE SURFACE (ha)
Source: ABPM, AGAPOMI, EPAGRI, DEROL, IBGE
APPLES VARIETIES ( %)
Others 5%
Fuji's 35%
Gala's 60%
Source: ABPM, AGAPOMI
Cold Capacity (T) and Packings
State
AC
AN
90
242.726
136.152
378.878
110
207.880
107.670
315.550
PARANA
19
-
11.172
11.172
BRASIL
220
450.606
254.994
705.600
SANTA CATARINA
RIO GRANDE DO SUL
PH
Source: ABPM
TOTAL
EXPORT
and
IMPORT
APPLE EXPORT (T)
Fonte: ABPM, SECEX
EXPORT PRICE FOB ($/kg)
Source: SECEX
EXPORT PRICE FOB (R$/kg)
DESTINATION (2008 in %)
Other 19%
Holland 32%
Finland 4%
Bangladesh 4%
Germany 5%
Spain 5%
Sweeden 5%
Portugal 5%
UK 16%
France 6%
Fonte: ABPM, SECEX
DESTINATION (2011 in %)
Other 11%
Denmark 3%
Finland 4%
Holland 31%
UK 5%
Germany 6%
Ireland 8%
Bangladesh 13%
Spain 9%
Portugal 9%
Fonte: ABPM, SECEX
IMPORTAÇÃO DE MAÇÃS 2010 (T)
120.000
100.000
80.000
60.000
40.000
20.000
2007
2008
2009
Source: ABPM, SECEX
2010
2011 f
ORIGIN 2010 (%)
France 4%
Spain 1%
Italy 2%
Others 1%
Chile 30%
Argentina 63%
Source: ABPM, SECEX
TRADE
POSITIVES ASPECTS
•
•
•
•
•
According to the POF-IBGE, brazilian apple
was the 4th. fruit most consume in 2008.
In 2011, CNA realize a study regarding fruit
consumption, apple became the 2nd. fruit
most remembered by the public.
In the same CNA’s study apple became the
2nd. Fruit most consumed and the brazilian’s
preferred fruit.
Apples do have an appeal for health and
good taste.
Wholesalers and retailers do recognize the
importance to have apples in their mix and in
the shelves.
Actual situation
Apples is the second fruit most consumed in important
cities like São Paulo and Belo Horizonte:
46
Banana
24
Maçã
Banana
48
Maçã
31
13
Laranja
Mamão
Abacaxi
2
Pera
3
Mexirica
3
Outras
3
14
Laranja
6
Mamão
São Paulo
4
Abacaxi
2
Outras
1
Belo Horizonte
Source: Connection Pesquisa e Análise de Mercado, 2004
25
Wealth Distribution
Source: Centro de Polliticas Sociais FGV
Demography
Source: Mundo Corporativo n. 28 - Deloitte
Source: Mundo Corporativo n. 28 - Deloitte
DEMOGRAPY BONUS
• Unique moment in the brazilian history and will
not repeat.
• During the next 3 decades the economically active
population (PEA) will be more important than the
other kinds, non working, kids and elderly.
• => More saving
• => More Job
• => More investment and consumption
•  More GROWTH
Brazilian Apple Market
2007
2008
2009
2010
2011 *
Production
993.227
983.240 1.052.514 1.226.338 1.200.000
Domestic offer in Natura
632.728
731.032
765.825
906.536
966.378
Export
112.073
112.250
98.203
90.839
48.622
Domestic Production in Natura
564.154
675.990
704.482
829.657
851.378
68.574
55.042
61.343
76.879
115.000
Industry
317.000
195.000
249.829
305.842
300.000
Brazilian Population – IBGE in (000)
187.796
189.736
191.592
193.224
194.933
3,37
3,85
4.00
4.69
4.96
Import
Consumption in natura kg/hab
Fonte: ABPM, SECEX
Sales Prices nominal 18 kg boxes
75.00
67.79
64.32
65.00
63.78
64.92
60.52
56.67
52.47
55.00
49.14
51.20
49.42
47.04
44.99
45.86
43.40
45.00
36.70
48.95
45.35
42.76
38.19
37.85
35.18
32.08
35.00
28.10
24.27
25.00
22.14
21.42
16.30
22.32
25.92
23.40
15.45
15.00
21.78
18.90
14.04
25.92
23.70
18.18
16.74
10.98
5.00
1999
2000
2001
2002
2003
2004
Beneficiador
2005
2006
CEAGESP
2007
2008
2009
2010
2011
Varejo
Source: ABPM; CEAGESP; IEA – Instituto de Economia Agrícola - 2011: up to May
YEARLY AVERAGE SALES OF PACKED
APPLES
Cat 1, 2 e 3
Gala R$/kg
Fuji R$/kg
2003
1,127
1,292
10,38%
8,69%
2004
0,874
1,195
6,13%
12,42%
2005
1,196
1,477
5,05%
1,20%
2006
1,428
1,579
2,81%
3,84%
2007
1.105
1,490
5,16%
7,74%
2008
1,338
1,615
6,48%
9,81%
2009
1,184
1,343
4,114%
-1,712%
5,058%
3,947%
47,50%
49,31%
Variation
2003/2009
INPC
Supermarkets: 2003 a 2009 +45%
Source: ABPM
IGPM
SUPERMARKETS STRUCTURE 2009 (R$177bi, +11,7%)
3 Maiores
Supermercados
40,44%
77,811 Outros
Supermercados
32%
480 Seguintes
14,39%
Source: NIELSEN 2009
17 Seguintes
14,08%
Increased role of exchange rate on trade
OUTLOOK 2012
2012 CROP
•
•
•
•
•
•
Very good winter
Climate condition during blooming good
No frost
No hail so far
Thinning under way
May be a bumper crop
FINAL COMMENTS
Review of concerns
Sustainability
• Increased costs for supply ( food safety, logistics, packaging,
actives substances, labor, ...)
• Return often below cost of production for many growers
• Supply fragmentation v. retail concentration
• Emergence of discounter and impact for suppliers
• Multiplication /proliferation of requirements
• Consequences on demand of changing consumer behavior
• Improved postharvest techniques making a flat price along
the year
Review of concerns
Consumption
• Stagnating consumption and increased competition from
other products
• Limited initiatives on promotion, need to enhance marketing
campaign, how? Financing of marketing - growers, state,
both?
• Role of innovation and varietal or club development
• How to benefit from healthy assets of apples,
• consumer purchasing patterns and dietary behaviors will
influence demand for apples?
• Quality, how to cope with fruits under standard
– Rito Sumario
Review of concerns
Market
• Concentration of buyers versus pulverization of
growers/packers
– Consortium
– Growers Concentration
• Promoting Consumption
–
–
–
–
Government?
Fruits in the school
Army
Global marketing project
Review of concerns
Emerging issues
• Role of unexpected climatic conditions on production and
trade ( snow, frost, drought, flood,..) and also on
consumption
• Role of currency fluctuation ( € ; £, $, zl, Ruble, SH currencies,
…)
• Future impact of the climate change debate ( environment,
water, waste, packaging , logistics,..)
• Coping with NGO negative campaign in Europe affecting
image of produce and consumer confidence
Review of concerns
CLIMATE
• Mainly Hail
– Insurance
– Netting
• Lower taxes on investment against hail
• Subsidy of interest rates
• Long term loan
MECANIZATION
• Orchard and Packing
FINANCIAL DEBTS
• Retruscturation
CONCLUSION
• Brazilian Government through law n. 4504 –
30/11/64, is encouraging the producers to create a
consortium to get back power of negotiation to the
growers, allowing to form one legal entity for sales
and for buying.
• Boost Internal market
– Project: More fruits at school
– Project: Healthy Tourism
– Project: Bella
•
•
•
•
•
•
Fruits presentation in supermarket
Degustation
Communication
Merchandising
Reinforcement Action in the press
Web Marketing
• To increase consumption we must offer improved
quality, have a better divulgation throughout the
media,
• we do have an asset, our apple is recognized for its
flavor that is nationally recognized.
• Apple cannot missed at home and in the
supermarket, according to consumer
• It is an item of the shopping list
Consumers want to buy good quality
apples.
• Strengthening Farmers organization
– Association
– Cooperative
– Consortium
• Qualify the offer
• Marketing, communication, promotional events,
listening to the consumer’s wishes
• Give value to our products
• Invest in fundamental research, biotechnology
• Better clones, productivity, mechanization, orchard
conduction
GRACIAS
WWW.ABPM.ORG.BR