Relief. That's how those who import product into the U.S. from Brazil feel following last week's announcement from U.S. president Donald Trump that 40 percent tariffs would be removed on Brazilian agricultural product coming into the country. President Trump had announced the tariff news in July of this year.
© Pommer Fresh Foods
This development on tariffs is late though for the Brazilian ginger season.
"This was great news," says Apanatche Bark of Pommer Fresh Foods. The company specializes in shipping ginger from Brazil, though it didn't stop its shipments to the U.S. given its customer programs were already in place. "As we have a solid customer base, we just kept shipping. We took a bit off our profits and increased it by a few dollars to customers. They understood. However our volume didn't change."
This development is late though for the Brazilian ginger season. While Pommer Fresh Foods finished its shipments last week, it still has three to four weeks of shipments on the water. Given that the order applies to product that was shipped on or after November 13th, that will offer tariff relief to some of that product. "I think we will be able to recover a bit of our profits and end the season on good terms," says Bark, adding that the price increase did tighten margins.
© Pommer Fresh Foods
L-R: Pommer Fresh Foods' Marcio Camargo and Apanatche Bark.
Brazilian volume this season
He also notes that ultimately, the tariffs showed who the real players in the ginger market were and weren't. "Once they imposed the U.S. tariffs, importers that are looking for profit only stopped shipping. Volume went down 30-40 percent of containers coming to the U.S.," he says, noting that in the meantime, prices in Europe on Brazilian ginger were very low this season.
© HLB SpecialtiesBrazil is a key country in HLB Specialties' papaya supply.
Meanwhile at HLB Specialties, Andrés Ocampo is also relieved about the update. The company ships papayas from Brazil and it's a key country in its papaya supply. "This change allows us to offer more competitive prices in the U.S. market and helps growers achieve their margins they need to sustain their businesses while continuing to deliver the top-quality fruits U.S. consumers expect," says Ocampo.
For more information:
Apanatche Bark
Pommer Comercio Internacional Ltda
www.pommerfreshfoods.com
Andrés Ocampo
HLB Specialties
www.hlbinfo.com
