Brazil has a large domestic market for fruit and vegetables, but it's limited by economic, logistical, and weather issues. Demand growth does not keep pace with available international supply, and the market's absorptive capacity is highly dependent on the exchange rate, domestic costs, and fragmentation of access to fresh food.
Unlike traditional trading companies, Locuston serves as a local sales office for growers. The company's teams in Brazil monitor incoming products, analyze the market, and actively participate in commercial decisions, Cipriani stated. "The producer is involved in daily discussions about who to sell to, how to sell, and at what price," he said.
According to Cipriani, the Brazilian grape market has changed. In previous years, there was a significant demand for Chilean and Peruvian grapes. However, things have shifted with the development of Petrolina's production pole. Currently, this region supplies the domestic market year-round, leaving little room for imported fruits, except when adverse weather conditions arise or very competitive prices are offered at the origin.
"The European apple sector had a difficult season due to logistical problems such as delays, a shortage of ships, and congestion in ports. The quality of the apples was good, but these obstacles made sales difficult. The Chilean harvest is going well, but sales in Brazil depend on the local production volume, which is still unclear." Cipriani stated.
Chile's kiwi season has just started. The starting prices are historically high, influenced by the expectations of Chilean growers and a lower global supply, partly due to the aftermath of the pandemic and diseases in various growing areas, Cipriani stated.
The price of a box of Chilean Gala apples ranges between $20 and $23, depending on the classification and the operator's urgency.
Two major structural problems continue to affect the sector in Brazil: the erratic exchange rate and logistical challenges, particularly in road transport from Chile. This transport competes with other industries, such as the fishing sector, and is often hindered in winter by closures of the Paso Los Libertadores.
"Brazil has enormous market potential, but the purchasing power of a large part of the population limits access to fresh fruits."
For more information:
Ricardo Cipriani
Locuston
Tel: +55 48 99974 3483
Email: [email protected]
www.locuston.com