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Brazilian exchange rate influences daily operations

“We are a fruit importing and exporting company. Mainly focused on export these days, because of the weak exchange rate of the Real in Brazil,” starts Cristiano Glória from Transcomex GG. They arrange for the trade of Brazilian limes and mangoes from the Jaíba region, located in the northern part of Minas Gerais.

The mango variety they work with is the Palmer mango. Cristiano continues, “This mango variety is only grown in Brazil. Different regions in Brazil produce the Palmer mango, they fill each other’s gaps to achieve year round availability. Palmer mangoes are exported by air, since sea freight is risky due to long transition periods of about 15 days. An advantage of airfreight is that we are able to export 'ready to eat' mangoes, which isn’t possible by sea freight. We have a strong domestic presence with the Palmer mangoes, but the export markets such as Europe (UK), Middle East en Canada are more important.”

Cristiano explains that the drought is not really a big issue for them. “Water is an issue all over the world. We cope with less rainfall each year and longer periods of drought. However, Brazil is a continental country and you have to see this in perspective. There are regions that suffer more from the drought compared to other regions. The Jaíba region is the largest irrigation programme in Latin America. The water level of the São Francisco river has been lower, but it has never been completely empty. Luckily we don’t have to deal with drought issues.”

Cristiano Glória of Transcomex GG

Looking at the competition, Cristiano refers to a similar mango Astolfo from Spain. “Palmer mangoes are only grown in Brazil and is more like a speciality, which means that there are no competing countries with the same variety. Astolfo is a similar mango from Spain, but these are offered at a higher price level. Varieties Kent and Kait are available for the larger volumes. In this case Peru is our biggest competitor. They usually offer their mangoes at lower prices, but work with a different season.”

In his opinion there are other issues that have more influence on the sector. “Brazil has to deal with political instabilities. Moreover, people are talking about a crisis in Brazil. This is shown in a less favourable exchange rate. Normally we are dealing with an exchange rate of 1 Real to 3.20/3.30 Euro. At the moment we are working with a rate of 1 Real to 4.05/4.10 Euro. The word crisis is more a term that has been promoted by the media. Some sectors have difficulties and other sectors are still growing. Nonetheless, it's more difficult that’s for sure.”

The Jaíba region has more to offer than just mangoes and limes, finalizes Cristiano. “Our region is also a major producer of the Prata banana. A well accepted variety in Brazil that doesn’t oxidise and has a rich taste compared to the Cavendish bananas. A goal has been set to open new markets for this variety, as well as markets from overseas.”

For more information:
Cristiano Glória
Transcomex GG
T: (1) 860-924-0782 US
T: (55) 31-9124-9600 BR

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