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International Resources: Global Market Profile: Brazil

Brazil

Global Market Profile: Brazil

http://www.gacheson.org/images/d/d7/Brazil_flag.jpg

As part of its commitment to providing its members with market analysis and insight, PMA has compiled the following information about Brazil from the Ministério da Agricultura, Pecuária e Abastecimento (Ministry of Agriculture, Livestock, and Food Supply) and Attaché Reports submitted by the U.S. Department of Agriculture’s Foreign Agricultural Service, as well as the CIA World Factbook, embassy sites, and business etiquette reference guides.

Table of Contents

Fresh Fruit, Vegetable, and Flower Market

Fruit and Vegetable Market

Brazil is a large producer of fresh fruits and vegetables. Major fruit exports are mangos, grapes, melons, bananas, apples, pineapple, and papaya.  Brazil imports temperate fruits such as apples, pears, grapes, plums, peaches, and nectarines.  The main suppliers of fresh fruit to Brazil are Chile, MERCOSUR members, and the European Union.

Brazil imports fresh vegetables such as potatoes, onions, garlic, peas and lentils.  Vegetables are supplied mainly by Argentina, Chile, and other major exporters.

Currently agriculture employs 31% of the labor force and accounts for 8.7% of GPD.

Fresh Flower Market

Brazil has an internal consumer market for flowers of nearly 190 million people, though it is still only a minor world supplier of fresh cut flowers.  However, floriculture exports have been rising each year since 2002.  The country has developed an important rose production industry in the northeastern highlands; pom-poms are being cultivated there as well.  Brazil also produces many tropical flowers.  The main market for Brazilian cut flowers is the Netherlands; other major buyers are the United States, Italy, Canada, Spain, Germany and Mexico.

Brazil exports mainly to the Netherlands, the United States, Italy, Canada, Spain, Germany and Mexico.

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Consumer Trends

Brazil’s economy is the largest in South America. The country has a young population with fairly low purchasing power and increased spending due to the growth in overall economy.  About 83% of Brazil’s population lives in urban areas. Smaller stores are being consolidated as an increasing number of people buy from supermarkets.  Around 80% of food and beverage products are sold through supermarkets; other distribution channels are fast-food restaurants, bars, traditional restaurants, and bakeries. 

Exports come to Brazil primarily from MERCOSUR countries. Upper-class eating habits are strongly influenced by European tastes, however, and the European Union is the second largest exporter to Brazil. EU products are generally seen as being traditional and sophisticated.

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Entering the Brazilian Market

For the majority of exporters it is necessary use an agent or distributor, joint venture partnership, or representative office to establish a local presence in Brazil.  New exporters (and particularly smaller companies) looking to create a market presence often work with agents, who can supply good access to potential buyers.

The food industry in Brazil is well developed and competitive. Exporters should know that most imported products are not price competitive with locally produced ones.  The shelf price of important goods is generally from two to four times the FOB price at origin.  Therefore, imported products should distinguish themselves from local goods.  High-end consumers are more willing to pay a greater price for certain items, so importers must have new, trendy products or a greater variety of brands and products.  Packaging, status, and level of innovation are important characteristics that will better the success of products entering the market.

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Trade Agreements

Brazil is a member of the regional trade agreement between MERCOSUR (Southern Common Market) countries, along with Argentina, Paraguay, and Uruguay.  MERCOSUR has free trade agreements with the following countries:

MERCOSUR has framework agreements with the following countries and organizations:

Brazil has the following partial preferential agreements through MERCOSUR:

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Food Standards and Regulations

The importation of agricultural products is regulated by two institutions: the Ministry of Agriculture and Food Supply [note: link to http://www.agricultura.gov.br] (MAPA) and the Ministry of Health [note: link to  http://www.saude.gov.br] (MS).  The Department of Surveillance of Agricultural Input (DFIA) is responsible in particular for the inspection, registration, and standards of seeds, grains, fruits, and vegetables.

Labeling of good and beverage products must comply with Brazilian governmental regulations.  If the product is permitted to be marketed, the legal representative of the exporting company must request either product registration or an official exemption from registration.  Often private consultants are used to aid in the registration of products.  If there is more than one importer for the same product, each importer is required to make a separate request.  The forms should be given to the Ministry of Health’s local office in the state where the importer is legally based.

The Secretariat of Rural Protection (SDA) of MAPA supervises six departments which have responsibility for import regulations for different agricultural sectors:

  • The Department of Animal Origin Products Inspection Service (DIPOA), in charge of food safety, registration, and labeling of cattle, sheep, swine, goat, horse, game meat, poultry, dairy products, eggs, and seafood.
  • The Department of Plant Origin Products Inspection Service (DIPOV), which regulates the registration and labeling of distilled spirits, wine, soft drinks, and juices.
  • The Department of Animal Health (DSA), which is responsible for the prevention, control and eradication of diseases of semen, embryos, and live animals.
  • The Department of Plant Health (DSV), in charge of protecting and pest prevention of fresh fruit, fresh vegetables, nuts, bulk grains, and seeds.
  • The Department of Surveillance of Agricultural Input (DFIA), which inspects seeds, grains, fruits, and vegetables and controls registration and standards.  
  • The Department of Surveillance of Livestock Inputs (DFIP), which handles the inspection and registration of feeds, fodders, pet food, and embryos.

The National Agency of Sanitary Surveillance (ANVISA) under the Ministry of Health regulates importation and marketing of most processed food products.

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Business Protocol

  • Men greet each other by shaking hands while maintaining eye contact.  A woman wishing to shake hands with a man should extend her hand first. Women usually kiss each other, starting with the left side and alternating cheeks. Hugging and backslapping are common greetings between friends in Brazil.
  • Dress well.  Men should wear conservative, dark colored business suits.  Three-piece suits usually imply that someone is an executive.
  • Women should wear elegant and feminine dresses or suits.  Good quality accessories should be worn, and manicures are expected.
  • Business appointments are necessary.  While it is best to schedule appointments two to three weeks in advance, meetings can often be made on short notice.  Confirm the appointment in writing; it is not unusual for meetings to be changed or dropped at the last minute.
  •  In Sao Paulo and Brasilia, arrive on time for meetings.  In Rio de Janeiro and other cities it may be acceptable to arrive a few minutes late.  If you are made to wait for your counterpart, do not appear impatient. 
  • Meetings are generally informal. 
  • Business cards are exchanged with everyone at a meeting during introductions.  While it is not mandatory to have one side of your card translated into Portuguese, it is advisable.  Present your business card with the Portuguese side facing the person.
  • You will probably be interrupted when speaking or making a presentation.  Communication is usually informal and does not require strict rules of protocol.  If anything wishes to say something, he or she says it.  It is acceptable to interrupt someone who is speaking.
  • Be prepared to answer questions about your company.  Brazilians like to do business with people and companies they know.
  • Do not rush through the time spent talking and building a relationship with your colleagues. Wait for your Brazilian counterpart to initiate a business discussion.  
  • Brazilians prefer face-to-face meetings because it enables them to see with whom they are doing business.  They believe the individual with whom they are meeting is more important than the company.
  • Business is hierarchal.  Decisions are made at the top of the company.
  • Do not change the members of your negotiating team; this may cause negotiations to stop, or you may have to start over from the beginning.
  • Employ local lawyers and accountants in negotiations.  Brazilians strongly dislike outside legal presence.
  • Brazilians may spend a long time reviewing details.  Do not rush them or appear impatient.
  • It is extremely important that you do not criticize or do anything to embarrass a Brazilian.  Criticisms would not only shame the person being scolded but would reflect poorly on you.
  • If invited to a Brazilian’s home, bring a small gift or flowers.  Orchids are popular flowers to give, but avoid giving purple ones.  Gifts are opened when received.  Do not give handkerchiefs, which are associated with funerals, or anything purple or black (these are mourning colors). 
  • If you did not bring a gift, flowers the day after are always appreciated.
  • You should arrive at a home for dinner at least 30 minutes late, and up to an hour late for a party or large gathering.  You should dress elegantly.  It is better to be over-dressed than under-dressed.  Brazilians dress very stylishly and will pay attention to and judge another’s appearance.

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Export Business Reminders

  • Use metric terms.
  • Ensure that all sales documentation is correct.
  • Be patient regarding requests for documentation, ingredients lists, production process, and quality assurance and respond to such requests with diligence and in a timely fashion.
  • Use letters of credit to reduce risk.
  • Hedge export values with your bank if you are concerned about exchange rate risk.
  • Set up wire transfers for payments.

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Related Links and Government Resources

Currency - the currency of Brazilis the Real (BRL). Use the currency converter to compare to dollars, GBP or Euro.

Weather – see Yahoo!'s up to date Weather for Brazil.

News - read the latest Google news on Brazil.

Dialing Code - the international dialing code forBrazil is +55.

Time -Brazil is-3 hours GMT. Get the time inBrazil now

Foreign Embassies in Brazil: http://www.meg.org.br/meg_serv_03.php or http://www.amadeusturismo.com.br/_Informacoes/Embaixadas/No_Br.htm

 

Government Resources

Ministry of Agriculture, Livestock, and Food Supply (MAPA)

Esplanada dos Ministerios, Bloco D

CEP: 70043-900,

Brasilia, DF

PABX: (61) 3218-2828

E-mail: binagri@agricultura.gov.br

Internet site: http://www.agricultura.gov.br

Brazilian Environment Institute (IBAMA)

SAIN - Av. L 4 Norte

70800-200 Brasilia, DF

Phone: (55-61) 226-8221

Fax: 322-1058

Internet site: http://www.ibama.gov.br

Office of Rural Development and Cooperativism (SARC)

Ministry of Agriculture, Livestock, and and Food Supply (MAPA)

Esplanada dos Ministerios, Bloco D, 3 Andar  Sala 304

Brasilia, DF 70043-900

Phone: (55-61) 321-3594

Fax: (55-61) 321-4524

Internet site: http://www.agricultura.gov.br

Ministry of Health (MS): http://www.saude.gov.br

Agency of Sanitary Surveillance (ANVISA)

Ministry of Health

Esplanada dos Ministerios, Bloco G

70058-900 Brasilia, DF

Phone: (55-61) 315-2343

Fax: (55-61) 225-6056

Internet site: http://www.saude.gov.br

Ministry of Development, Industry and Foreign Trade (MDIC)

Esplanada dos Ministerios, Bloco J

70056-900 Brasilia, DF

Phone: (55-61) 329-7000

Fax: (55-61) 329-7230

Internet site: http://www.mdic.gov.br

Brazilian Customs (Receita Federal)

Ministry of Finance

Esplanada dos Ministerios, Bloco P

70048-900 Brasilia, DF

Phone: (55-61) 412-3000

Fax: (55-61) 412-1721

Internet site: http://www.fazenda.gov.br

Brazil's Booming Agriculture Faces Obstacles: Brazil's position as a food and agricultural superpower could be threatened as supply-side factors slow production growth and rising domestic demand reduces surpluses. *Amber Waves; November, 2006. Constanza Valdes

USDA Economic Research Service briefing room: Over the past decade, Brazil has consolidated its position as an important agribusiness producer and major food supplier to international markets. Brazilian agriculture has benefited from currency devaluations, low production costs, rapid technological advancements, and domestic and foreign investment to expand production capacity. Brazil is a very competitive exporter of soybeans, soymeal, sugar, poultry, beef, coffee, tobacco, frozen concentrated orange juice, soyoil, and ethanol. Brazil, a pioneer in biofuels production, is a world leader in using fuel ethanol in the transport sector. Export earnings have financed imports of wheat (for which growing conditions are poor) and, on occasion, corn (mainly used as feed in the expanding poultry sector). ERS economists provide analysis on Brazil's agricultural production, trade, and policy.

Brazil: Issues and Analysis: USDA Economic Research Service Briefing Room

  • Domestic Support to Brazilian Agriculture on the Rise
  • Credit in Brazil’s Agricultural Policy Framework
  • Brazil's Rural Credit Programs and Use of Financial Resources, 2003/04 and 2004/05 1/

 

 

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