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Brazil Intent on Reaching 10% of Global Organic Market

The global consumption of organic products is growing 30% a year and has a turnover of US$ 40 billion. In Brazil, one of the six greatest global producers, production in the sector covers an area of approximately 800,000 hectares, according to the Ministry of Agriculture.

BioFach Latin America, the conference that is going to bring together organic product specialists from Brazil and abroad, between October 25 and 27, in São Paulo, in the southeast of the country, will be officially announced today (15), at the Federation of Industries of the State of São Paulo (Fiesp), during seminar "Organic products and sustainability: two themes for the 21st century".

"The announcement of BioFach-LA at Fiesp is very meaningful as the sector has started being faced as an investment opportunity," stated Maria Beatriz Bley Martins Costa, director of Planeta Orgânico and co-organizer of BioFach Latin America and of ExpoSustentat, the 1st International Fair of Sustainable Goods and Services, to take place in the sidelines of BioFach, at Transamérica Expo Center.

BioFach LA is the Latin American version of the greatest world fair of organic products and is already at its fourth edition in Brazil, the first in São Paulo.

During the seminar to take place today, specialists are going to discuss agribusiness and the organic sector in Brazil, as well as sustainability and aspects related to the insertion of organic products in the international market.

Among the speakers are Edmund Kltoz, head of the Brazilian Food Processors Association (Abia); Ingo Plöger, president of IP Entrepreneurial and Institutional Development, the company organizing the 1st Forum of Leaders in Sustainability, to take place during ExpoSustentat 2006; Ming Liu, manager of the Organics Brazil Project, which has the support of the Brazilian Export and Investment Promotion Agency (Apex); and Roberto Gianetti da Fonseca, director of the International Relations Department at the Fiesp.

"It is interesting to point out the strategic relevance of this seminar, which precedes two international events to take place in São Paulo. BioFach and ExpoSustentat are going to bring together in the same space producers of organic products and companies that produce in a sustainable manner.  We believe that there will be great synergy among both groups," pointed out Maria Beatriz, who is also one of the speakers at the seminar.

According to her, the release of both events in São Paulo also marks a new phase for the sector in the country. "We have already registered over 1,000 restaurants in São Paulo that are interested in expanding the offer of organic products in their menus. We have also talked to public and private schools that may visit BioFach to learn about experiences related to organic products in school meals," she added.

On the domestic market, the most common organic products are vegetables, followed by coffee, sugar, juice, honey, jams, beans, cereal, dairy products, sweets, teas and medicinal herbs. In a lower scale, organic drinks like wine, beer and cane spirit may also be found. This is also the case with shrimp, chicken, cattle beef, eggs, textiles and cosmetics.

Figures supplied by the Economic Research Institute Foundation (Fipe) reveal that national producers of organic products had revenues of US$ 250 million last year. But the target is to reach approximately 10% of the global organic product market by 2010. As the movement in the sector is about US$ 40 billion, this represents a share of between US$ 3 billion and US$ 4 billion.

"The main factor for expansion of the organic sector in the country is the regulation of Law 10,831, which has not yet been sanctioned by the Brazilian president," explained Costa. "It establishes parameters for the trade of organic products on the domestic market and is vital for optimisation of production and for the reduction of the cost of these products." Specialists are unanimous in stating that the lack of standardization of production and trade methods for organic products is an obstacle for the sector.

Nowadays around 75% of the national production of organic products is exported, especially to Europe, the United States and Japan. In Europe, Germany is the main consumer of Brazilian organic products, followed by Holland. Arab countries like Algeria, Saudi Arabia, Bahrein, the United Arab Emirates and Lebanon are also included in the list of importers of Brazilian organic products.

According to a spokesperson for Planeta Orgânico, the Arab countries are considered important potential markets for Brazilian exports of meats and organic fruit. "The Arab market really represents a great potential consumer market, especially for certified meats and fruit," stated Maria Beatriz. "There are many fronts to be opened. Demand for organic products is not lacking. We only need to organize offer," he finished off.

Among the main organic products exported are soy, white sugar and brown sugar, coffee, citric fruit juices, honey, rice, fruit (mango, banana, melon and paw-paw), scented oils, nuts, mate herb, mushrooms, babacu oil, vegetable oil, forestry essences, vegetable extracts, dehydrated fruit, cane spirit and sweets.

Service

Seminar: Organic products and sustainability: two themes for the 21st Century
September 15 (Friday)
From 9:00 am to 01:00 pm
At the offices of the Federation of Industries of the State of São Paulo (Fiesp) – Av. Paulista, 1313, auditorium of the 4th floor

Fairs: BioFach and ExpoSustentat
October 25, 26 and 27
From 09:00 am to 06:00 pm
At Transamérica Expo Center – São Paulo

Event sites

www.biofach-americalatina.com.br

www.exposustentat.com.br

Anba

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